Mumbai Property Tax Rates Unchanged, but Bills Rise Due to Ready Reckoner Revision
The Brihanmumbai Municipal Corporation (BMC) confirms no increase in property tax rates for 2025-26, but residents are seeing higher bills due to the revision in ready reckoner rates. The changes come after a 10-year gap.
Property TaxMumbaiReady Reckoner RatesBrihanmumbai Municipal CorporationMaharashtraReal Estate MumbaiMay 30, 2025
Ready reckoner rates, also known as guideline values, are minimum property values determined by the government for taxation purposes in Maharashtra. These rates are crucial for calculating property taxes and are typically revised every five years.
In a release, the BMC explained that the average 15.89 percent increase in the latest property tax bills is a result of the revision in the capital value of properties. This revision is mandated under section 154(1)(c) of the Mumbai Municipal Corporation Act, which requires the capital value of properties to be updated every five years. The last revision was carried out in 2015, and the update scheduled for 2020 was deferred due to the COVID-19 pandemic.
The Maharashtra government revised the ready reckoner rates on March 31, 2025. The current revision comes after a 10-year gap, and there is a legal provision that these payments will be automatically revised due to the changes made in the ready reckoner for the financial year 2025-26.
The BMC annually collects property tax from more than nine lakh property owners in the city and its suburbs. Notably, elections to the BMC, which have been pending for three years, are expected to be held in the next few weeks following a Supreme Court order.
Political party leaders have raised objections to the recent property tax hike. In a post on X, BJP leader and former BMC opposition leader Ravi Raja said, 'While common Mumbaikars continue to pay diligently, 481 big defaulters owe Rs 11,000 crore with no serious recovery in sight. Why burden sincere citizens?' Raja also demanded that the civic administration act firmly on chronic defaulters before imposing hikes on honest taxpayers.
'The burden of inefficiency cannot be passed on to law-abiding citizens,' he asserted.
The BMC has also stayed the implementation of solid waste management fees after Maharashtra Chief Minister Devendra Fadnavis and Deputy CM Eknath Shinde pointed out that the revised property tax was going to put an additional burden on city residents. Flats smaller than 500 square feet are already exempted from property tax, the BMC noted.
Frequently Asked Questions
What are ready reckoner rates?
Ready reckoner rates, also known as guideline values, are minimum property values determined by the government for taxation purposes. These rates help in calculating property taxes and are typically revised every five years.
Why are property tax bills higher in Mumbai for 2025-26?
The higher property tax bills in Mumbai for 2025-26 are due to the revision in ready reckoner rates, which were last updated in 2015. The changes in these rates automatically increase the capital value of properties, leading to higher tax bills.
Is the Brihanmumbai Municipal Corporation (BMC) increasing property tax rates for 2025-26?
No, the Brihanmumbai Municipal Corporation (BMC) has not increased property tax rates for 2025-26. The higher bills are due to the revision in ready reckoner rates, which are mandated by law to be updated every five years.
What is the average increase in property tax bills for 2025-26?
The average increase in property tax bills for 2025-26 is 15.89 percent, as a result of the revision in the capital value of properties based on the new ready reckoner rates.
Are there any exemptions from property tax in Mumbai?
Yes, flats smaller than 500 square feet are already exempted from property tax in Mumbai. The BMC has also stayed the implementation of solid waste management fees to ease the burden on city residents.
Related News Articles
Mumbai's Infrastructure Boom: Will it Make the City More Livable?
Mumbai's infrastructure boom has brought about significant changes
Stabilizing Housing Rents: A Shift in the Indian Real Estate Market
Average residential rental prices across key markets in India's top 7 cities saw a 2-4% quarterly rise in Q2 2024, with substantial new housing supply entering the markets.
Brandon Miller: A Shining Star in NYC Real Estate Development
Discover the inspiring story of Brandon Miller, a New York-based real estate agent and Managing Partner at REEC Franklin, who has made a significant impact in the industry.
Macrotech Developers' Stock Sees 3% Jump on Record Q2 Pre-Sales; Nomura Maintains Buy Rating
Macrotech Developers, one of the leading real estate developers in India, has delivered around 100 million square feet of real estate and is currently developing over 110 million square feet under its ongoing and planned portfolio. The company reported it
Baba Siddique: The Rise of a Political and Real Estate Magnate
Baba Siddique, a prominent figure in Mumbai’s political and real estate landscape, began his career as a corporator in 1995 and later rose to become a Minister of State for Food and Civil Supplies and Labour in the Maharashtra government. His influence in
Joyville Shapoorji Housing Hosts a Thrilling Performance by Sukhwinder Singh
Pune (Maharashtra) [India], November... Commenting on the event, P. Rajendran, Chief Sales and Marketing Officer, Shapoorji Pallonji Real Estate, shared insights on the enthusiastic response from the audience and the impact of such events on the community